Utopia Talk / Politics / SpaceX & xAI to merge before IPO

murder rank	Tue Feb 03 00:29:25 Elon Musk’s SpaceX acquiring AI startup xAI ahead of potential IPO Elon Musk is combining rocket maker SpaceX with his artificial intelligence startup, xAI, as the merged entity gears up for a massive IPO. The deal was announced on Monday in a blog post from Musk, who said he’s forming “the most ambitious, vertically-integrated innovation engine on (and off) Earth, with AI, rockets, space-based internet,” and its X social media platform. The combined company is expected to price shares in an IPO that would value it at $1.25 trillion, Bloomberg reported. Public records with the state of Nevada obtained by CNBC indicate that the deal was completed on Feb. 2, with Space Exploration Technologies Corp. listed as the “managing member” of X.AI Holdings. The transaction marks the largest tie-up in Musk’s vast business portfolio and brings together two companies that have been soaring in value on the private markets. SpaceX opened a secondary share sale last year at a valuation of $800 billion, while xAI was valued at about $230 billion in a $20 billion round that closed earlier this year. Tesla, Musk’s electric vehicle maker and the source of most of his liquid wealth, said last week that it’s agreed to invest about $2 billion into xAI. Early last year, Musk expanded xAI by merging it with his social network X, formerly known as Twitter. XAI is facing a host of new regulatory probes, including by authorities in Europe, India, Australia and California, after its Grok AI tools enabled users to easily generate and share sexualized images of children and non-consensual intimate images of adults, mostly women, based on photos of them that had been shared online. Musk founded SpaceX in 2002 and has turned it into the leading provider of orbital launch services through contracts with NASA and the Department of Defense. SpaceX also owns and operates the Starlink satellite internet service, which has more than 9,000 satellites in orbit and roughly 9 million customers. In 2023, Musk launched xAI as a potential competitor to OpenAI, which kicked off the generative AI boom with the release of ChatGPT late the prior year. Musk was one of the co-founders of OpenAI in 2015, when the project was started as a nonprofit AI lab. He left in 2018, and is now involved in a heated legal battle with the company and CEO Sam Altman. Reuters reported late last week that SpaceX generated an estimated $8 billion in profit on $15 billion to $16 billion of revenue in 2025, citing two people familiar with the company’s results. Meanwhile, xAI’s finances are more tenuous as the cash-burning company tries to build up its costly infrastructure to keep pace with OpenAI and Google, which were earlier to AI and are ahead in the race to build the most widely used model. But Musk is framing the deal as part of a strategic futuristic plan to put data centers in space. SpaceX recently asked the Federal Communications Commission for authorization to launch “up to 1 million” satellites as part of its “orbital data center.” “My estimate is that within 2 to 3 years, the lowest cost way to generate AI compute will be in space,” Musk wrote. “This cost-efficiency alone will enable innovative companies to forge ahead in training their AI models and processing data at unprecedented speeds and scales, accelerating breakthroughs in our understanding of physics and invention of technologies to benefit humanity.” https://ww.../elon-musk-spacex-xai-ipo.html
murder rank	Tue Feb 03 00:32:09 "SpaceX recently asked the Federal Communications Commission for authorization to launch “up to 1 million” satellites as part of its “orbital data center.”" What could go wrong? -
Habebe rank	Tue Feb 03 01:07:50 I mean, you only hate Elon because he isn't leftwing.
murder rank	Tue Feb 03 01:30:41 No, I hate Elon because he cons people by claiming that he's going to do shit that he is absolutely not going to do. -
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